Bank of America is the first of the major banks to start a new program for Homeowners who are in trouble of losing their property to foreclosure. The new program will allow homeowners who owe more that 120% of their homes value to adjust their principal balance. Bank of America says they will forgive up to 30% of the customer’s loan principal.
This is a positive step in the right direction to prevent homeowners from falling into foreclosure. The loan program will begin in May 2010 and may be the blueprint for other major lenders to follow.